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Tag: Madison

  • To oversee creative, digital media & social media

    Madison Loop wins Oberoi Realty mandate

    By Our Staff

     

    Madison Loop, the digital arm of Madison World, has won the integrated mandate for Mumbai’s real estate major, Oberoi Realty. The agency will oversee creative, digital media, social media and performance marketing for the client.

     

    Speaking about the association Sarina Menezes, Head and Vice President – Brand Marketing and Corporate Communication, Oberoi Realty, said: “We are delighted to appoint Madison as our Integrated Creative Agency. Madison was selected after a thorough and competitive pitch process. We are confident their creative and digital solutions will add value to our marketing and communication strategy at Oberoi Realty.”

     

    Added Kosal Malladi, Vice President, Madison Loop: “Partnering with Oberoi Realty, a brand renowned for world-class luxury, extraordinary finesse and unparalleled design sensibility is a privilege. Building on our extensive experience in the real estate sector, with a focus on brand communication and digital marketing, we look forward to contributing to the company’s growth and further strengthening their position in the real estate space. We are thrilled to embark on this rewarding collaboration”.

     

  • He will also introduce the agency to new tools, concepts and workflows

    Madison gets Rob Norman as advisor for digital transformation of clients

    By Our Staff

     

    Madison Media has announced the appointment of well-known digital media specialist Rob Norman as an advisor to accelerate digital transformation at key clients.

     

    Norman was until recently Global Head of Digital at GroupM. He has also been CEO of GroupM, North America. Currently, he is an independent Board member at Piano, MiQ, Simpli.fi, Knotch, Zeotap and a few other digital-first companies.

     

    Rob Norman will offer advisory services to Madison’s top clients, and introduce the agency to new tools, concepts and workflows.

     

    Said Madison World Chairman, Sam Balsara: “We are delighted to have Rob join us as a strategic advisor in the digital transformation space and am sure he will add a lot of value to our teams and our clients. The advertising world has turned digital. India with a digital share of Adex at 40% tracks a little behind the global average of 55% and we hope with Rob’s help to offer world beating thought leadership to our clients.”

     

    Added Vikram Sakhuja, Partner and Group CEO, Madison Media & OOH: “I have had the privilege of working with Rob for many years and his insights, clarity of thought and approach to Clients’ businesses has been inspiring. I’m thrilled to be able to partner with him again in helping build the business of Madison’s Clients.”

     

    Said Norman on his appointment: “I have known Sam, Vikram and Madison for many years. I am a great admirer of the business and its leadership. Independent, entrepreneurial organizations are well placed to innovate with speed and agility. I am excited to spend more time in India, it’s a country I love and a country rich in opportunity.”

     

  • In 2022, Digital overtook TV to turn the largest medium with a 38% share, notes the Pitch Madison Advertising Report 2023 released on Wednesday

    AdEx grew 21% in 2022, to grow 16% in 2023: Madison

     

     

    By Our Staff

    Madison Media presented its predictions for the advertising industry for 2023.  The highlights of the report were released by Sam Balsara, Chairman, Madison World. According to Madison Media, AdEx has grown by 21% in 2022 to reach Rs. 89,803 crore. AdEx is expected to grow further in 2023 by 16% and will cross the landmark Rs. 1 lakh crore number to settle at Rs. 1,04,230 crores. In 2022, Digital grew by 35% to become the largest medium in AdEx with a 38% share, compared to TV’s 34%. TV grew by a modest 9% vs our projection of 14%.

     

    Figures at a glance:

     

    Key findings of the report:

    A. Overall:

    1) In 2022 total AdEx grew by 21%, Traditional AdEx by 14% and Digital AdEx by as much as 35%.

    2) Compared to Indian AdEx growth rate of 21%, Global AdEx, according to WARC grew by just 8% in 2022. The Top 11 countries that account for 70% of Global AdEx grew by only 1%.

    3) In absolute terms, AdEx has grown from Rs. 74,231 crore to Rs. 89,803 crore and this is the second highest gain of the last two decades.

    4) Traditional AdEx dominates Indian AdEx with a 62% share, whereas in Global AdEx the figure is 32%.  With a growth of 14% in 2022, Traditional Media at Rs. 55,399 crore, has just crossed its 2019 figure of Rs. 52,136 crore.

    5) Digital AdEx is now the largest medium with a share of 38%, followed by TV with a share of 34%.

    6) The Audio Visual medium contributes to 45.6% of total AdEx. Linear TV at Rs. 30,662 crores and Digital Video at Rs. 10,314 crores, totalling to Rs. 40,976 crores.

    7) FMCG continues to be the largest category, but its share has moved down from 38% in 2020 to 32% in 2022.

    8) Ecommerce has now established itself as the 2nd biggest category of AdEx, growing in Share from 4.9% in 2019 to 14% in 2022.

    9) The Top 5 Advertisers in AdEx are HUL, Reckitt, RIL, Dream11 and Mondelez. There are only 11 Start-Ups in the Top 50 Advertisers List vs 15 last year, confirming that VC money is drying up.

     

    B. Digital

    1) Digital grew by 35% in 2022, on top of a 50% increase in 2021, to reach Rs. 34,405 crore and has emerged the largest medium in AdEx with a 38% share, overtaking TV.

    2) A 10-year review shows that Digital has grown from a mere Rs. 3,050 crores with a 9% share, to Rs. 34,405 crores with a 38% share today.

    3) Inspite of all this growth, Digital AdEx in India trails behind Global AdEx. Digital share in Global AdEx is 68%.

    4) Video, Social, Display, Ecommerce and Search drive Digital AdEx. Digital Video continues to dominate Digital AdEx and having grown by 40%, has further improved its Share from 29% to 30%.

    5) Social grew the most at 45% and increased its Share from 20% to 22%. Display has grown more modestly at 19% and has lost 3 percentage Share points from 19% to 16%. Search has grown by 32%, but is only 16% of the market.

    6) Ecommerce has registered a 35% growth and now has a share of 16% of Digital AdEx. Whilst Google and Facebook account for the lion’s share of Digital ADEX, Amazon and Flipkart account for almost 80% of Ecommerce spends.

    7) Digital is going to continue to fuel growth of AdEx in 2023. It is expected to grow by 25% to reach Rs. 43,036 crore and increase its share to 41% of AdEx.

     

    C. Television

    1) TV registered a modest growth of 9%, against our forecast of 14% to reach Rs. 30,662 crore.

    2) In 2022, for the first time we see signs of stress in Linear TV and its Share has come down from a high of 42% in 2020 and 38% in 2021 to a new low of 34%. With increasing spends in Digital, TV has now moved down to number 2 position in the Indian AdEx.

    3) TV has also seen a 8% decline in viewership over the last year, and a 13% drop compared to pre-Covid year 2019.

    4) TV has seen a marginal drop in Advertisers from almost 11,000 in 2021 to less than 10,500 in 2022.

    5) FMCG continues to be the largest contributor to TV AdEx with a share of 45%. Ecommerce, the 2nd largest contributor to TV AdEx, further increased its share from 18% to 20%, followed by Auto which has maintained its share at 5%.  Education has dropped its share from 6% to 4%.

    6) In terms of Genres, Hindi GEC 2 has registered the highest growth of 47% followed by Sports at 22%. News, witnessed a degrowth during last year. Among the regional satellite channels, Tamil continues to rule the roost, followed by Telugu, Marathi, Bengali, Kannada and Malayalam in that order.

    7) TV AdEx is expected to grow by 9% in 2023 to reach Rs. 33,522 crore.

    8) FMCG, the largest category of TV Market, is likely to substantially increase its Advertising budgets, instead of reducing consumer prices because of lowering of raw material inflation.

     

    D. Print

    1) Print AdEx grew last year by 11% to reach Rs. 18,470 crores, a little short of its pre-covid figure.

    2) Both Volume and Value in Print have gone up by 15% and 11% respectively.

    3) H2 performed well for Print and 58% of its AdEx came from H2 vs only 46% in pre-Covid year 2019.

    4) In terms of category contribution, although, Education de-grew marginally, it has emerged as the largest category in Print overtaking FMCG, which grew by as much as 8%. Two other large categories, Clothing, Fashion & Jewellery and Household Durables grew substantially by over 50%.

    5) In terms of languages, Hindi Publications continue to dominate, followed by English and Marathi, the latter two having grown by 19% over 2021.

    6) We expect Print AdEx to grow at 9% in 2023, to reach Rs. 20,133 crore and reach pre Covid levels.

    With this growth, its Share will be 19%, compared to Global AdEx where it is a mere 4%.

     

    E. Other Media

    1) OOH AdEx has registered a high growth of 68% on the back of a growth of 69% the previous year, taking the industry to Rs. 3,666 crore and surpass its pre Covid level.

    2) Digital OOH continued to be the growth driver with its big bright, colorful and moving displays.

    3) Radio AdEx has grown by 17% to reach Rs. 2,032 crore, but it is still at 90% of its pre Covid level. Its Share in total AdEx is at 2%.

    4) Real Estate has emerged as the largest category in both OOH and Radio, pipping FMCG.

    5) Although Cinema grew by 317%, it has reached only the half way mark of its pre Covid number of Rs. 568 crore. But with new movies coming up, we expect Cinema to grow by 75% this year and reach Rs. 995 crore, almost upto its pre pandemic level.

     

    Added Balsara: “Indian AdEx is the bright spot in a relatively dull and uncertain global environment. Our AdEx has grown by leaps and bounds in the last 3 years marked by Covid and the War, except in 2020. However, media habits of Indians are rapidly changing and this is reflected in our AdEx numbers and commentary. Advertisers who ignore these changes will do so at their own peril.”

     

    Bharat Puri, Managing Director, Pidilite Industries Limited who launched the report said: “Experiment, innovate, know your consumer and don’t be afraid of failure”. He said, “Whilst chasing impressions, don’t forget to make an impression!”

     

  • To handle the entire gamut of media

    Madison wins media AOR of Godrej & Boyce

    By Our Staff

     

    Madison Media Alpha, a unit of Madison World, has just announced the win of Godrej & Boyce integrated Media AOR. The account was won in a multi-agency pitch and the agency will handle the entire gamut of Media including TV, Print, Social Media, Digital, Performance Marketing, OOH and Activations.

     

    Speaking about the agency’s appointment, Mehernosh Pithawalla, Senior Vice President and Head – Brand and Strategic Insights, Godrej & Boyce said: “Madison World has been an industry leader in the realm of communications for several years, now. During the pitch, we observed a lot of synergies, brand resonance and a strong intent by the Madison team to work on Godrej & Boyce. We couldn’t have thought of a better ally to further business metrics and propel brand growth.”

     

    Commenting on this development Sam Balsara, Chairman, Madison World added: “My association with Godrej goes back to 1985, even before Madison came into being and I am delighted that Madison World has won this business in a competitive pitch and G&B has found our expertise and capabilities a cut above the rest and handed over the media AOR of this much respected Company to us. We look forward to growing their brands with our innovative and Client First approach.”

     

  • To handle the media mandate, including TV, print and digital

    Madison Media Ultra wins media AOR for 88Guru.com

    By Our Staff

     

    Madison Media Ultra, a unit of Madison World, has been appointed as the Agency of Record for the new education website 88Guru.com. The website is being launched by Singapore-based 88tuition Pte. Ltd. which is now set to launch in India under the brand name 88guru.com. Madison Media Ultra will handle the media mandate, including TV, print, and digital.

     

    Said Vinod Gupta, Director, 88Guru on associating with Madison: “We are excited to partner with the team at Madison as we attempt to transform the Ed-Tech industry. Madison’s expertise across the media spectrum, from traditional to new age, will be critical in our roll out. Lastly, the chemistry with the team has been excellent and we enjoy working with them.”

     

    Added Jolene Fernandes Solanki, COO, Madison Media Ultra: “We are excited to partner with 88Guru a Singapore based edtech company. Education has radically changed its business model as a result of the pandemic. We as a team are confident and excited to launch 88Guru in India and are sure it will exceed industry growth with its digital-first and outcome-driven approach.”

     

  •  The agency will handle the traditional media and digital media mandate for the client including TV, print and online video media buying and planning. The account was won in a multi-agency pitch

    Madison wins Media AOR of Ki Mobility

    By Our Staff

     

    Madison Media Omega, a unit of Madison World, has been appointed Media AOR for Ki Mobility. The agency will handle the traditional media and digital media mandate for the client including TV, print and online video media buying and planning. The account was won in a multi-agency pitch.

     

    Said Narasimhan Eswar, CEO, Ki Mobility Solutions Pvt Ltd on associating with Madison: “We are delighted to have Madison on-board as our Above-the-Line media partner. We believe that Madison with its incredible scale and talented personnel will add substantial value to Ki’s future plans to pioneer explosive growth in the Indian automotive aftermarket”.

     

    Added Dinesh Rathod, CEO, Madison Media Omega:“We are very excited by Ki’s vision and plans to revolutionize the Indian automotive aftermarket and we are delighted to partner Ki Mobility and help make it a preferred destination for all vehicle owners.”

     

  • In 2022, Digital to overtake TV to become the largest medium

    Adspends to grow by 20% in 2022 to reach 90,000 crores

     

     

    By Our Staff

     

    Madison Media predicts adspends (AdEx) will increase 20% in calendar year 2022. The highlights of the Pitch Madison report were released on Wednesday by Sam Balsara, Chairman, Madison World. According to Madison Media, AdEx is expected to grow by 20% in 2022 and reach Rs. 90,000 crore. This growth is on the back of a dramatic Rs. 20,000 crore increase in 2021 inspite of Covid wave 2. In 2021 Digital grew by 50% and in 2022 is expected to pip television to become the largest contributor to Adex with a share of 37%, compared to TV’s 36%. Print, too has grown dramatically by as much as 39%, retaining its share of 22% in Adex.

     

    Said Sam Balsara, Chairman, Madison World, “Advertisers seem to be returning to advertising with a vengeance. After Covid year 2020, Global Adex has registered a whopping 21% growth in 2021 and 18% versus pre-covid 2019. Compare this with a compounded annual growth rate of just 5% over 10 years from 2010 to 2019. India infact leads this return, with a growth of 37%, compared to a last 10-year compounded annual growth rate of just 10.4%.”

     

    Key findings of the Report:

    1. Overall:

    1 • In 2021 total Adex grew by 37%, Traditional Adex by 31% and Digital Adex by as much as 50%.

    2 • In absolute terms, ADEX has grown from Rs. 54,151 crore to Rs. 74,231 crore and comfortably surpassed the 2019 figure of  Rs. 67,603 crore by 10%.

    3 • Traditional Media contributes 66% of total Adex, whereas the global figure is 35%.  Despite a growth of 31% in 2021, Traditional Media at Rs. 48,793 crore, has not reached its 2019 figure of Rs. 52,136 crore.

    4 • Digital Adex has now reached a share of 34% and is in striking distance of TV, the leader of the pack which ended the year with a share of 38%. TV and Digital Adex now account for 72% of Adex.

    5 • Q3 and Q4 2020 contributed to 60% of Adex. Q4 registered a whopping 49% increase over Q4 2019.

    6 • FMCG continues to be the main category, but its share moved down from 38% in 2020 to 34% in 2021.

    7 • Ecommerce emerged as the 2ndbiggest category of Adex and the largest contributor to its growth, doubling in size from Rs. 3,000 crore to Rs. 6,000 crore.

    8 • 15 new-age Companies / start-ups have entered our list of Top 50 advertisers namely, Dream 11, BYJU’s, Phone Pe, Upstox, My 11 Circle, CRED, Netmed, MPL, Policybazaar, Unacademy, WhiteHat Jr, Swiggy, Netflix, Coin Switch Kuber and Coin DCX.

     

    2. Television

    1 • TV registered a high growth of 25% to reach Rs. 28,151 crore, following a 11% de-growth in 2020. TV is the only traditional medium that has comfortably surpassed the 2019 number of Rs. 25,291 crore, by as much as 11%. TV’s market share is at 38%, down from a high of 42% last year but one percentage point higher than 2019.

    2 • TV Adexwitnessed a 25% spike in Ad volume or FCT in 2021 over 2020 and a 11% increase against 2019. Significantly ad volume in 2021 is higher than 2020 in all four quarters.

    3 • FMCG continues to be the largest contributor to TV Adex with a share of  46%, but lost as much as five percentage points from a high of 51% in 2020. Ecommerce, the 2ndlargest contributor to TV Adex, increased its  share from 11% to 18%, followed by Edtech which increased its share  from 4% to 6%.

    4 • News as a genre has registered a high growth of 19% over 2019 and  29% over 2020. Marathi and Tamil Regionals have also grown dramatically by 36% and 24% respectively over 2019. Second line GECs de-grew by a massive 18% and mainline GECs de-grew by a negligible 3%. Hindi GEC continues to be the largest segment, followed by Sports and then News.

    5 • TV Adex is expected to grow by 14% in 2022 to reach Rs. 32,100 crore, 27% higher than 2019.

     

    3. Digital

    1 • Digital grows by 50% in 2021 to reach Rs. 25,438 crore and has emerged as a strong No 2  for the 2ndconsecutive year, at 34% share, a little short of TV at 38%. Digital has achieved a CAGR of 27% over last 10 years.

    2 • Q4 was the largest quarter, where Digital Adex touched almost Rs. 10,000 crore and contributed 39% to the full year.

    3 • Video is the highest contributor to Digital with a share of 29%, followed by Social & Display at 20% each.  E-commerce and Search now contribute 16% each to overall digital pie.  In terms of growth rate,  E-commerce has grown significantly by as much as  50%.  Display, Video and Search have also grown substantially at 30%+.

    4 • Programmatic has firmly taken route in India and its share continues to be 42%.

    5 • Ecommerce advertising revenue is rising rapidly and we estimate ecommerce advertising spends in 2021 to be at Rs. 4,100 crore, mainly on the back of Amazon and Flipkart, but newer entrants like Nykaa, Big Basket and JioMart are also finding favour with a relevant set of advertisers.

    6 • Digital is set to grow by 30% in 2022 to reach Rs. 33,070 crore and set to emerge as the single largest contributor to Adex, overtaking TV by almost a 1000 crores.

     

    4. Print

    1 • Following a 41% decline in 2020, Print Adex grew by a whopping 39% to reach Rs. 16,595 crore. Despite the high growth rate, Print is still only at its 2015 levels and has registered a 16% drop vs 2019.

    2 • With a share of 22% in Adex, India is the Print Capital of the world, along with Germany. Global share of Print is a mere 5%.

    3 • Print volume in terms of CC has also gone up by 31%.

    4 • 3 categories FMCG, Education and Auto make up 45% of total Print Adex. Both FMCG and Auto have come down in share by 2 percentage points each.

    5 • English and Hindi publications put together, contribute to 63% of total  Adex volume. English publications grew 40% over 2020. Hindi publications which are the largest volume contributor, also grew by 30%, Telugu by 37%, Assamese & Marathi by 33% and Bengali by 27%. All languages grew, the least to have grown are Kannada, Gujarati and Punjabi by 18-19%.

    6 • Print Adex is expected to grow by 13% in 2022 to reach Rs. 18,750 crore, but it will still be at the level it reached in 2017.

     

    5. Other Media

    1 • OOH Adex has registered a high growth of 69%, taking the industry to Rs. 2,178 crore, but still way below 2019 level. Conventional OOH grew by 63% and Transit Outdoor by almost 100%. Digital OOH is also beginning to take root and grew from Rs. 50 crore to Rs 300 crore and has a share of 13.77%, far below the global average of 40%. We expect OOH Adex to grow by 36%, to reach Rs. 3,000 crore, the level it had reached in 2017.

    2 • Radio Adex has grown by 36% to reach Rs. 1,733 crore, with a share of just 2 %. With this Radio is at the level it had reached in 2016. We expect Radio Adex to grow by 10% and reach Rs. 1,900 crore.

    3 • Cinema has been by far the worst affected medium. Because of 2 years of Covid, it has degrown by a further 25% over 2020 to reach 136 crores. We expect Cinema to grow by 267% to reach Rs. 500 crore, almost half of the  pre Covid level of Rs. 1050 crore.

     

    Figures at a glance:

  • It is encouraging to find from the two reports that the worst effect of pandemic is over, writes Indrani Sen

    So how do the GroupM & Madison forecasts compare?

     

    By Indrani Sen

     

    Like every year, last week we saw the release of both This Year Next Year 2021 (TYNY2021) by GroupM and Pitch Madison Advertising Report 2021 (PMAR2021) by Madison Media. Both agreed that the pandemic year 2020 was a disastrous one for the Indian Media and Advertising Industry, when the overall AdEx dropped by 20% (PMAR2021) to 21.5% (TYNY2021) from the 2019 level. Both have predicted better days in 2021 with the overall AdEx growing by 23.3% (TYNY2021) to 26% (PMAR2021).  According to PMAR2021, the predicted AdEx INR 68,325 crore in 2021 will touch the AdEx INR 67,603 crore in 2019. According to TYNY2021, the forecast for 2021 is INR 80,123 crore, which falls short by 3.35% from the AdEx in 2019 which was INR 82,904 crore.

     

    In spite of the huge gap in the overall AdEx estimates by the two agencies, it is relieving to find that the trends predicted by both of them are similar. The gap in the estimated size of the Indian AdEx between the two reports has been existing over many years and the Media and Advertising Industry has learned to live with the differences. TYNY2021 has estimated both TV and Digital AdEx at much higher levels than PMAR2021. On the other hand, PMAR2021 has estimated Print AdEx at a much higher level than TYNY2021. The following two tables show the details of the two reports by medium for making easy comparisons.

     

     

    According to PMAR2021, the pandemic year 2020 will go down in the history of Indian Media and Advertising as the year when Digital overtook Print and became #2 in terms of market share of overall AdEx. However, TYNY2019 showed Digital as the #2 and Print in the #3 positions in terms of market share. In 2020, GroupM estimated a 2% degrowth in Digital from 2019 level, while Madison Media estimated a 10% growth in Digital over 2019 level. Both the reports show Print AdEx in 2021 would be below the 2019 levels, while Digital AdEx would be crossing the 2019 levels in 2021. So, we can now conclude that Digital has the second highest market share in overall AdEx and it is unlikely that Print would be able to regain that position in 2021 or later.

     

    TV which holds the #1 position in Indian AdEx in both the reports, had degrowth of 11% (PMAR2021) to 14% (TYNY2021) last year, but is expected to grow at higher rate 17% (PMAR2021) to 18% (TYNY2021) in 2021 and touch or cross the 2019 AdEx levels.

     

    Both the reports show the huge loss which was suffered by the other traditional media, Outdoor, Radio and Cinema during 2020.  In spite of the overall growth of AdEx predicted for 2021, these three media would be far below their 2019 benchmarks. The combined market share of these three media continues to be less than 10% in both the reports. A difference in reporting between TYNY and PMAR has been noticed this year regarding Radio. While PMAR2021 has reported only on Radio, TYNY2021 has changed the nomenclature to Audio. It is however not very clear what other audio component apart from Radio has been included under that definition.

     

    It is encouraging to find from the two reports that the worst effect of pandemic is over; Media and Advertising industry is on the path of recovery; the process of digitisation has been accelerated; we are expecting a robust GDP growth and globally India will continue to be the second-fastest growing AdEx market among the top ten countries in 2021. At the same time, it is also frightening that the economic effects of Covid-19 have manged to wipe off two years of overall AdEx growth (2020 & 2021) and many media-owners and some media agencies still have to fight battles for survival.

     

  • Two weeks prior to the games, six creatives of each team were displayed on billboards, bus shelters, pillars, metro and airport branding to get maximum visibility and coverage

    MOMS executes #NBAInMyBackyard outdoor campaign

    By A Correspondent

     

    To promote the first ever NBA Games in India, Madison’s outdoor specialist agency, MOMS, executed a high decibel OOH campaign showcasing Mumbai’s key locations via #NBAInMyBackyard.

     

    Two weeks prior to the games, six creatives of each team were displayed on billboards, bus shelters, pillars, metro and airport branding to get maximum visibility and coverage.

     

    Said Jayesh Yagnik, COO, MOMS: “We are extremely proud to be part of this campaign wherein first ever live NBA games were played in India. We were happy to create the omnipresence for the game through strategically placed media all across. India is becoming a hub for a number of sports events. We’ve all followed NBA but bringing the games to India will open the gates for younger generation to take up the sport or furthermore make a career in it.”

     

     

  • Madison Media and Hiveminds, the digital specialist agency of Madison World

    Madison’s HiveMinds wins Domino’s digital biz

    By A Correspondent

     

    Madison Media and Hiveminds, the digital specialist agency of Madison World, have won the digital media mandate for Domino’s in a multi-agency pitch. The scope of work includes all forms of digital marketing including digital strategy, programmatic buying, digital media buying, performance and SEO marketing campaigns.

     

    Said Anand Thakur, Chief Digital Officer, Jubilant FoodWorks Ltd: “We believe that HiveMinds’ innovative digital approach in the online marketing space will help Domino’s to address it’s current and long-term business goals. Their insightful understanding of present-day India’s digital landscape and efforts on delivering the best to clients are a great fit as we collectively aim to achieve scale and growth.”

     

    Added Vikram Sakhuja, Partner & Group CEO, Madison Media & OOH: “Our relationship with Domino’s goes back 15 years and we are delighted that Domino’s has now entrusted us their Digital mandate. Digital will play a key role in their business growth and HiveMind’s team will work along with Madison Media team to provide a holistic solution to Domino’s.”

     

    Said Jyothirmayee JT, Founder & CEO, Hiveminds: “HiveMinds is arguably one of the strongest performance marketing agencies out of India. We are confident that we will be able to add a lot of value to Domino’s and contribute to their growth.”

     

     

  • Indrani Sen analyses the numbers unveiled in GroupM’s TYNY 2019 and Madison’s PMAR 2019 reports

    Indian Ad Industry: Are Happy Times Really Here Again?

     

    By Indrani Sen

     

    Indrani Sen

    Last week, the advertising and media industry probably had an overdose of data and information to chew, both GroupM and Madison released their annual reports on industry AdEx “This Year Next Year” (TYNY) 2019 and “Pitch Madison Advertising Report” (PMAR) 2019; Dentsu Aegis Network’s arm Posterscopre released a forecast for only OOH industry followed by the TAM AdEx Report and the results of the DD Free Dish e-auction held from February 11 to 14, 2019. It will not make any sense to discuss the implications of all the reports together. Let me today take a look at TYNY 2019 and PMAR 2019 released by GroupM and Madison.

    By now, industry professionals are reconciled to the reality that there is a big gap in the estimation of the size of the Indian Ad Industry by the two agencies. However, as an academic I find it difficult to explain the reasons of the same to my students. I was alarmed to find earlier that since 2016, the gap in real terms increased year on year till 2018 as shown in the chart below. It is reliving to find from the recent reports that the same is not increasing further in the estimates made for 2019 by GroupM and Madison. We can probably hope that in another few years the difference between the two estimates will be reduced to 4% to 8%, the acceptable statistical margin of error at the 95% confidence level.

    Estimated Size of Indian Ad Industry (Rs Crore)
    2016 2017 2018 2019 P
    TYNY 55671 61263 70602 80678
    PMAR 49480 53158 60908 70889
    Difference 6119 8105 9694 9789

     

    A comparative analysis of the 2018 adspends by media made in the two reports show that the main bone of contention between the two is in the estimated size and share of TV media. Apart from TV, the differences in the estimated size in rupee value of Print, Digital and Radio fall within the acceptable margin of error ranging from 4% to 8%.The estimated size in rupee value are very close for OOH and same for Cinema. The detailed analysis is given below:

    Indian Ad Industry 2018: Estimated Size (Rs Crore) & Share (%)

     Rs. Crore 2018 f   2018  
    Media TYNY %share PMAR %share
    TV 33577 48 23432 38
    Print 17970 25 19467 32
    Digital 12337 17 11706 19
    OOH 3202 5 3365 6
    Radio 2709 4 2144 4
    Cinema 806 1 805 1
    Total 70602 100 60908 100
    Growth over last year 11%   12%  

     

    In terms of forecasts for 2019, the growth rates predicted by TYNY for different media are lower than the growth rates predicted by PMAR, apart from Radio where TYNY has predicted a higher growth rate than PMAR. Both the reports agree that the highest growth rate will be in Digital media fuelled by mobile, online video and social media, followed by Cinema though on a very small base. In terms of overall growth, TYNY has pegged it at 14%, 2.4% lower than the prediction of PMAR at 16.4%.

    Indian Ad Industry Forecast
    2019p 2019p
    Rs Crore TYNY %  Share Growth % PMAR % Share Growth %
    TV 38612 48 15 27649 39 18
    Print 18368 23 2 20442 29 5
    Digital 16038 20 30 15612 22 33
    OOH 3536 4 10 3750 5 11
    Radio 3116 4 15 2401 3 12
    Cinema 1008 1 25 1047 1 30
    Total 80678 100 14 70889 100 16.4

     

    Both the agencies have cited upcoming Parliamentary elections and ICC Cricket World Cup 2019 as major contributor to the growth in ad spends in 2019. While Madison have cited increase in government spending to showcase its achievements, the growth of OTT, increased spending in rural sector and India moving to a consumption society as the other reasons for predicting a high growth for the ad industry, GroupM has highlighted major trends like emerging technology, availability of data, content creation and distribution, etc. as factors contributing to the growth in advertising expenditure. There is no doubt that after two bad years in 2016 and 2017, Indian advertising industry has turned around in 2018 and is poised for further growth in 2019.

    Let me turn around and play the role of Devil’s advocate musing over what can disrupt the rosy dreams of advertising industry during next year. Over the last four days all of us are reeling under the effect of the terrorist attack in Pulwama killing 40 CRPF jawans. The entire nation wants revenge and our expectations have increased since the last surgical attack. Such attacks and counter attacks may lead to unforeseen developments affecting our economy and business.

    After the results of the last round of state elections, many political analysts think that BJP may have to depend on coalition with other political parties to run the Government in Centre after the next General Election which may affect smooth functioning of the Government. The gross overspending (Rs. 99610 crores over approved expenditure) by the Union Government as reported recently by CAG may have a diverse effect on various government approved projects in future as well as rural development.

    If RBI falls in line with the directives of the Finance Ministry, then India’s financial ratings may suffer globally and rupee may face further devaluation in its foreign exchange rate. There could be changes in the domestic as well as foreign policies of US which will have far reaching effect on the entire world and India will not be an exception. To sum up, we are living in very uncertain times when any significant change in internal or external political situations or foreign/ economic policies can adversely affect the growth of our advertising industry. Let us keep our fingers crossed and hope that the predictions for the growth in advertising in 2019 made by TYNY and PMAR will be realised without any major disruption.

     

     

    List of my articles related to this topic over last three years:

     

    Feb 20, 2018 Mind the TV AdEx Gap

    Feb 20, 2017 What is the real size of the Indian Ad Industry

    Nov 21, 2016 Post Demonetisation, it’s boom to doom for ad spends

    Feb 15, 2016 Boomtime for Media: A Review of Pitch Madison Advertising Report 2016

     

  • The Pitch Madison Advertising Report notes that adspends increased 14.6% in 2018

    AdEx to grow 16.4% in 2019: Madison

     

    By A Correspondent

     

    Media agency network Madison is bullish about 2019 and expects a growth of 16.4% taking the total AdEx to Rs 70,888 crores. “The reasons for our high forecast are upcoming Parliamentary elections, increase in government spending to showcase its achievements, the upcoming ICC Cricket World Cup 2019, growth of OTT, increased spending in rural and India moving to a consumption society,” notes a communique, adding: “In 2019, we believe highest growth will come from Digital at 33%, followed by Cinema at 30% (although on a very small base), followed by TV (18%), Radio (12%), Outdoor (11%) and Print (5%).”

    Adspends have grown from Rs 53,138 crore to Rs 60,908 crore, an addition of  7,769 crores, the highest addition in one year in the last decade. The growth rate of 14.6% achieved in 2018 is almost double the growth rate achieved in 2017, notes the Pitch Madison Advertising Report 2019 release on Wednesday.

    Television still continues to be the largest contributor to Adex with 38% share, followed by Print at 32%, Digital at 19%. Outdoor, Radio and Cinema share has remained steady at 6%, 4% and 1% over the last 3 years.

     

     

    Figures at a glance:

    Indian Advertising Market
    2016 2017 2018 2019 Forecast
    Medium In Rs Crore % Share In Rs Crore % Share In Rs Crore % Share Growth % 2018/17 In Rs Crore % Share Growth % 2019/18
    TV 18831 38% 19650 37% 23432 38% 19.20% 27649 39% 18.0%
    Print 18151 37% 18640 35% 19457 32% 4.40% 20429 29% 5.0%
    Radio 1749 4% 1875 4% 2144 4% 14.30% 2401 3% 12.0%
    Cinema 523 1% 586 1% 805 1% 37.40% 1047 1% 30.1%
    Outdoor 2910 6% 3085 6% 3365 6% 9.10% 3750 5% 11.4%
    Digital 7315 15% 9303 18% 11705 19% 25.80% 15612 22% 33.4%
    Total 49480 100% 53138 100% 60908 100% 14.60% 70889 100% 16.4%

     

    Other findings of the report, as per the communique:

     

    1. TV:
      • TV grew by an unbelievable 19% to reach close to the   Rs. 23,500 crore mark, reinforcing regular Advertisers’ unshakable faith in this medium, no doubt aided by the robust measurement mechanism set up by our Industry.
      • This is the highest growth TV has witnessed in last 3 years. In terms of absolute numbers, TV advertising has grown by Rs. 3,782 crore in 2018.
      • And its share in the Adex pie stands at 38%. Whilst its share has declined over the decade from 43% in 2009, it is significant that since 2015 it has increased its lead over Print and now the gap in share is as much as 6 percentage points.
      • The main categories that have fueled the overall growth of Rs. 3,782 crores in 2018 are the evergreen FMCG (Rs. 1,660 crores) and Auto (Rs. 360 crores). E-commerce category too grew dramatically by 29% to reach Rs. 1,100 crores from Rs. 850 crores in 2017.
      • FMCG continues to rule the roost contributing as much as 50% to the total Television Adex, followed by Telecom at 12% and Auto at 8%.
      • Increase in FCT has also been a big contributing factor to the overall increase of 19% in the TV Advertising Market. The overall FCT demand in 2018 has increased by 12% led by growth in frequency channels and new channel launches.

     

    1. Print
    • India probably is the only major market where Print Adex is actually growing year on year.
    • Print grew by 4.4% during the year, marginally lower than our projection of 5%.
    • However, Print continues to be 2ndhighest contributor after Television with a share of 32%. And this share of Adex is also the highest in the world.
    • The resilience of Print is brought out in the fact that it has 200,000 Advertisers and the number is growing, compared to TV which has only 12,000 Advertisers.
    • Nearly 75%, of Print’s growth of Rs 820 crores is accounted by just 5 categories – FMCG, Education, Auto, Retail & E-commerce.
    • In terms of Volume, Hindi publications continue to be ahead of English publications contributing 35% of the total volume, while share of English publications dropped by 2% and now contributes 25%.

     

    1. Digital
    • The digital advertising market had an impressive growth of 26% in 2018. It has been growing at a compounded annual growth of 30%+ for last 10 years and 24% for last 5 years.
    • The continued growth of digital is fueled by mobile, online video and social media, which are increasingly attracting more advertising investment.
    • One of the key reasons for this growth has been the proliferation of OTT platforms. The OTT playing field has seen a 3.5x increase in number of players from just 9 players in 2016 to 30 players now.
    • Digital Adex at Rs. 11,705 crores is now 19% of Adex in 2018. It was only 9% in 2013.
    • Google and Facebook continue to dominate digital spends cornering 80% of the total digital pie.

     

    Says Mr. Sam Balsara, Chairman, Madison World, “After two dull years, 2018 has seen significant growth in Television and Digital and we expect the momentum to continue in 2019. With this growth, India has regained its pole position of being the fastest growing advertising market in the world and is expected to retain this position even in 2019.

     

    There is no doubt that for Advertisers, Media has become a complex subject and they need competent and experienced, creative media planners, working in enabling environments, provided by good media agencies to build their Brands.”

     

     

    If you would like a full copy of the Report, please email rj@madisonindia.comÂ